Demand for credit is not growing as expected, as there are fewer investments in the country.
According to Roberto Orellana Milla, CEO of Banco Agrícola, "demand for credit has dropped 4%".
Elsalvador.com published more statements by Orellana: "Although we are in the midst of a slight economic recovery, we are still being affected by the 2009 crisis, and uncertainty and insecurity are contributing factors for the little demand for credit, 'because the crisis has affected a lot of companies and individuals'".
Fitch Ratings reported that the risks to regional banks during the current crisis are growing and represent a major challenge for 2009.
The combination of reduced credit expansion, fund restrictions and increasing loan provisions have limited the profits of most banks and it is expected for these factors to continue to pressure the results in the coming months.
Fitch Ratings reported that the risks to regional banks during the current crisis are growing and represent a major challenge for 2009.
The combination of reduced credit expansion, fund restrictions and increasing loan provisions have limited the profits of most banks and it is expected for these factors to continue to pressure the results in the coming months.